Biscuits and cookies major Britannia Industries’ net profits scaled by 151 per cent to ₹932 crore in the third quarter ended in December 2022, compared with ₹369.18 crore in the same quarter last year.
The net profits for this quarter include an exceptional gain (net of tax) of ₹359 crore due to a joint venture agreement with Bel SA for the cheese business consequent to the sale of a 49 per cent equity stake in its subsidiary, and a fair valuation of the remaining 51 per cent stake, said the company in a release.
Its consolidated sales for Q3 grew 16 per cent to ₹4,101 crore, compared to ₹3,530.70 in the same quarter last year.
Varun Berry, Vice-chairman and managing director, said: “Our go-to-market strategy and investments in brands and innovation have helped us register a robust topline growth of 16 per cent y-o-y. Continued focus on enhancing direct reach and a rural agenda have helped us deliver solid growth over the past few quarters. We supported our brands and innovations with the requisite investments in the digital and mass media spaces.”
For Q3, the company announced earnings per share for ₹38.71 compared to ₹15.41 in Q3 FY22.
Berry also noted that on the cost and profitability front, their pricing actions and intensified cost efficiency programme helped mitigate the inflation. “Our operating margins improved by 330 basis points this quarter as a result of opportunistic buying and moderate inflation. We are being vigilant of the competitive actions in the marketplace and shall deploy appropriate pricing actions to drive market share.”
On the JV, the MD said, “In line with our ambition to become a responsible total foods company, we entered into a strategic partnership with Bel to offer Indian consumers a range of nutritious, delicious, and accessible cheese products. Cheese is an under-penetrated category, and this partnership will help us expand the nascent but fast growing cheese category in India and be a leader in fulfilling evolving consumer needs.”